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Showing posts with label ADVFN III World Daily Markets Bulletin 3 April 2013.. Show all posts
Showing posts with label ADVFN III World Daily Markets Bulletin 3 April 2013.. Show all posts

Apr 3, 2013

ADVFN III World Daily Markets Bulletin 3 April 2013.

ADVFN III World Daily Markets Bulletin
Daily world financial news Wednesday, 03 April 2013

US Market
Stocks Move Modestly Lower On Disappointing Data

Stocks have moved to the downside over the course of early trading on Wednesday following the release of a pair of disappointing economic reports. The major averages have moved moderately lower after ending the previous session firmly in positive territory.

The major averages are currently posting modest losses, near their lows for the young session. The Dow is down 31.98 points or 0.2 percent at 14,630.03, the Nasdaq is down 10.27 points or 0.3 percent at 3,244.59 and the S&P 500 is down 6.24 points or 0.4 percent at 1,564.01.

The weakness on Wall Street comes following the release of a report from payroll processor Automatic Data Processing, Inc. (ADP) showing that private sector employment in the U.S. rose by much less than expected in the month of March.

ADP said private sector employment increased by 158,000 jobs in March compared to economist estimates for an increase of about 205,000 jobs.

While the report also showed that the private sector job growth for February was upwardly revised to 237,000 from 198,000, the job growth for January was downwardly revised to 177,000 from 215,000.

Further selling pressure was generated by the release of a separate report from the Institute for Supply Management showing an unexpected slowdown in the pace of service sector growth in March.

The ISM said its non-manufacturing index dipped to 54.4 in March from 56.0 in February, although a reading above 50 indicates continued growth in the service sector. The drop surprised economists, who had expected the index to come in unchanged.

Following yesterday's weaker than expected reading on manufacturing activity, the reports have added to concerns about the economic impact of the sequester.

Housing stocks are seeing considerable weakness in early trading, with the Philadelphia Housing Sector Index down by 1.9 percent. The loss extends a recent downward move by the index, which has fallen to its lowest intraday level in a month.

Healthcare provider, financial, and airline stocks have also come under pressure, moving to the downside along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region turned in yet another mixed performance on Wednesday. While Japan's Nikkei 225 Index surged up by 3 percent after two days of losses, Hong Kong's Hang Seng Index edged down by 0.1 percent.

Meanwhile, the major European markets have all moved to the downside on the day. The German DAX Index has dipped by 0.2 percent, while the U.K.'s FTSE 100 Index and the French CAC 40 Index are down by 0.6 percent and 0.7 percent, respectively.

In the bond market, treasuries are moving higher on the heels of the disappointing economic data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.3 basis points at 1.838

Canadian Market
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TSX Dips At Open Wednesday - Canadian Commentary

Bay Street stocks moved down at open Wednesday amid selling in gold and financial stocks, with the S&P/TSX Composite Index dipping 68.24 points or 0.54 percent to 12,613.86.

Among financial stocks, Royal Bank of Canada eased 0.25 percent after it said that it had acquired the Athena Energy Group, a natural gas supplier in Quebec for undisclosed terms.

In the gold space, Alamos Gold Inc. Goldcorp.  Detour Gold and Royal Gold were down around 1 percent each.

Meanwhile, Absolute Software Corp. surged over 13 percent after announcing it has entered into a global partnership with Samsung Electronics.

In the oil patch, Baytex Energy Corp. and Paramount Resources added about 1 percent each.

In corporate news from Canada, lender Toronto-Dominion Bank or TD Bank Group announced that its President and Chief Executive Officer Ed Clark will retire on November 1, 2014 at age 67, after 12 years as CEO. He will remain as a Director until TD's 2015 Annual Meeting.

Drug maker Valeant Pharmaceuticals International Inc. increased its offer to acquire Obagi Medical Products Inc. (OMPI) to $24.00 per share from $19.75 per share in cash. Yesterday, Merz Pharma Group announced a sweetened proposal to acquire all of the outstanding common stock of Obagi Medical Products Inc. (OMPI) for $22 per share in cash.

Absolute Software Corp. announced it has entered into a global partnership with Samsung Electronics. Under the partnership, Samsung will embed patented Absolute persistence technology into the firmware of Samsung GALAXY mobile devices as a feature of Samsung KNOX, which will be launched later this year.

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European Market
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European Markets Mostly Lower

The European markets are mostly lower on Wednesday, ahead of key interest rate decisions in the region later in the week, as Cyprus got a new finance minister. The Asian stocks ended mixed while the U.S. futures point to a higher open.

Haris Georgiades was sworn in as Cyprus' new finance minister after Michalis Sarris quit the post to facilitate an inquiry into what led the Mediterranean Island to the brink of bankruptcy. Tough days of harsh negotiations and policy implementation are awaiting Georgiades, who inherits a crippled banking sector that is undergoing reforms and restructuring.

Meanwhile, International Monetary Fund Managing Director Christine Lagarde said the lender is prepared to provide 1 billion euros to the bailout fund for Cyprus.

Inflation in the euro area decelerated for the third consecutive month in March, but to a lesser extend than forecast by economists, as energy prices increased at a significantly slower pace, initial estimates showed.

British construction sector remained in the red for a fifth month running in March, but the pace of deterioration in activity slowed from the previous month, a survey report from Markit Economics revealed.

The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.62 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.23 percent.

The German DAX is losing 0.2 percent while the French CAC 40 and the UK's FTSE 100 are falling 0.4 percent each. Switzerland's SMI is advancing 0.5 percent.

In Frankfurt, ThyssenKrupp is losing 2.9 percent and Siemens is down 1 percent. UBS cut United Internet to ''Neutral'' from ''Buy.'' The stock is falling 1.2 percent. Bucking the trend, Continental is gaining 2 percent and HeidelbergCement is adding 1.3 percent. Bernstein raised Basf to ''Outperform'' from ''Marketperform.'' The stock is up 1 percent.

In Paris, France Telecom is declining 3.6 percent. UBS cut the stock to ''Sell'' from ''Neutral.'' Saint Gobain is losing 1.4 percent and Bouygues is down 0.9 percent. Technip is gaining 2.8 percent and Publicis Groupe is advancing 2.6 percent.

In London, Standard Life is declining close to 6 percent and RSA Insurance is dropping 5 percent. Vodafone is losing 2 percent. Verizon Communications Inc. Tuesday said it does not currently have any intention to merge with or make an offer for the British mobile phone company.

Eurasian Natural Resources is falling 5.7 percent and Fresnillo is losing 4.3 percent.

However, Vedanta is gaining over 4 percent. The copper miner said the Supreme Court of India allowed an appeal and reversed the Madras High Court's order to shut down copper smelter of its Indian subsidiary Sterlite Industries (India) Ltd., in Tuticorin in the southern state of Tamil Nadu, for violation of environmental norms.

Schroders and John Wood Group are advancing 2.5 percent and 2 percent, respectively.

Telecom Italia was cut to ''Sell'' from ''Buy'' at UBS. The stock is dropping over 4 percent in Milan.

Delhaize is losing 4.1 percent in Brussels, reportedly on a broker downgrade.

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Asia Market
Asian Stocks Mixed; Nikkei Jumps 3% On BOJ Hopes

Asian stocks turned in a mixed performance on Wednesday as investors waited for the outcome of central bank meetings in Japan and Europe this week for directional cues. Investors also looked ahead to the U.S. jobs data due later this week after data yesterday showed unemployment in the euro area held steady at a record high in February because of the region's enduring debt crisis.

Japan's Nikkei index jumped nearly 3 percent, helped by a weaker yen on expectations of aggressive monetary easing as the two-day Bank of Japan policy meeting got underway under its new governor, Haruhiko Kuroda. Kuroda has been talking of bold action and aggressive easing steps to lift the economy from deflation and boost growth. Automakers and tire manufacturing companies led the gainers, while steel and paper companies ended subdued.

The yen's weakness against the dollar buoyed exporters, lifting automakers such as Nissan, Toyota, Honda and Mazda Motor up 4-6 percent. Fast Retailing soared 14 percent as the apparel retailer reported a sales surge at its Uniqlo casual-clothing chain for March. Mobile carrier Softbank jumped over 5 percent to hit its 2013 high, tire maker Bridgestone rallied 3.9 percent and East Japan Railway climbed 5.6 percent. Tokyo Electric Power closed up 24 percent on heavy volume after its president pledged that the company would return to a profit in the coming year.

China's Shanghai Composite index slipped 0.1 percent as investors adopted a cautious stance ahead of public holidays on Thursday and Friday. Hong Kong's Hang Seng index also eased 0.1 percent in thin trading because of the holiday tomorrow.

In economic news, growth in China's services sector grew at a faster pace to hit a six-month high in March as a construction boom and firmer demand boosted confidence, a private survey showed. The Markit/HSBC services business activity index rose to 54.3 in March from 52.1 in February. Another survey conducted by the China Federation of Logistics and Purchasing and the National Bureau of Statistics showed that the business activity index rose to 55.6 in March from 54.5 in the previous month.

Australian shares lost ground, as weakness in metal prices on concerns about global economic growth weighed on miners. BHP Billiton, Rio Tinto and Fortesce Metals Group fell 2-3 percent, dragging the benchmark S&P/ASX 200 down 0.6 percent to 4,958. Gold miner Newcrest tumbled 3 percent after gold futures fell sharply on Tuesday to close at their lowest level in nearly four weeks.

Among the major banks, ANZ lost 1.9 percent after announcing the departure of Alex Thursby, currently CEO of the international and institutional banking division of ANZ, who will leave the bank later this month to take up a new job in the Middle East. Commonwealth shed 0.7 percent, but Westpac and NAB rose about half a percent each.

Oil and gas producer Santos declined 2.1 percent after ratings agency Standard & Poor's changed its criteria for assessing the equity content of so-called hybrid instruments. Woodside Petroleum slipped 0.6 percent amid reports its A$40 billion Browse gas project could be delayed by up to a decade if the company doesn't come to a final investment decision by June.

On the macroeconomic front, Australia's trade deficit narrowed more than estimated to $178 million in February, official figures showed, while new home sales tumbled 5.3 per cent in the month, raising concerns about the state of the economy.

South Korean shares fell for a third consecutive session, weighed down by foreign selling amid lingering geopolitical risks as North Korea stepped up its warlike rhetoric and provocative actions. The benchmark Kospi average ended down 3 points or 0.2 percent at 1,983. Debt-laden STX Offshore & Shipbuilding tumbled by the daily limit of 15 percent, extending the previous session's plunge, after the ailing shipbuilder said it has submitted a voluntary debt-rescheduling plan to its creditors seeking financial support.

New Zealand shared ended little changed with a positive bias, led by heavyweight shares. The benchmark NZX-50 rose 1.4 points or 0.03 percent to 4,413. Telecom, which announced a cost-cutting program last month, rallied 3.6 percent, while Fletcher Building, the nation's largest construction company, gained 0.1 percent.

Kiwi Income Property Trust and Vector rose 1-2 percent as investors lapped up shares offering attractive dividend yields. Utility Contact Energy fell 2.2 percent, extending the previous session's 3.3 percent loss due to uncertainty over the future of the Tiwai Point aluminum smelter.

Elsewhere, India's benchmark Sensex was down 0.6 percent on profit taking following four days of gains. Malaysia's KLSE Composite was little changed, while benchmark indexes in Indonesia, Singapore and Taiwan were up between 0.2 percent and 0.5 percent.

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Crude Slips Ahead Of Inventories Data

The price of crude oil was moving lower Wednesday morning as traders await more clarity on the inventories situation from the EIA's weekly oil report, due out later during the session.

Light Sweet Crude Oil (WTI) futures for May delivery, slipped $0.47 to $96.72 a barrel. Yesterday, oil settled higher tracking rising global equity markets after some positive factory data out of the U.S. Investors also weighed some encouraging U.S. automobile sales data for March, with most car makers recording significant growth, fueling hopes of demand growth for oil. Nevertheless, the gains were limited with a slew of disappointing economic data from Europe.

Tuesday after the market hours, the API said US crude oil inventories jumped 4.70 million barrels, while gasoline stocks shed 5.00 million barrels in the weekended March 29.

This morning, the U.S. dollar was hovering around its four-month high versus the euro and lingering near its two-week low against sterling. The buck slipped back near a fresh one-month low versus the yen and trading flat against the Swiss franc.

In economic news, inflation in the euro area decelerated for the third consecutive month in March, but to a lesser extend than forecast by economists, as energy prices increased at a significantly slower pace, initial estimates showed. The harmonized index of consumer prices increased 1.7 percent year-on-year in March after growing 1.8 percent in February. Economists had forecast a quicker slowdown to 1.6 percent. The rate of growth weakened for the third month in a row.

Traders will look to the private sector employment report from the ADP, due out at at 8:15 am ET. Economists expect the report to show an addition of 205,000 jobs by the private sector following payroll gains of 198,000 in February.

A little later, the Institute for Supply Management is due to release the results of its non-manufacturing survey for March at 10 a.m. ET. The consensus expectations call for an unchanged reading of 56 for the month.

Today during trading hours, the EIA will release its U.S. crude oil inventories report for the weekended March 29. Analysts expect US crude oil inventories to add 2.1 million barrels last week

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